Basidiome pellicular to membranaceous, separable. Hymenial surface smooth to warted, cream-coloured to ochraceous, locally with orange spots. Margin fibrillose. Subicular hyphae thin- to slightly thickwalled, hyaline, 1.5-4 µm wide, with clamps at all primary septa. Hyphae often with crystals, sometimes completely ensheathed. lamprocystidia hyaline, somewhat thick-walled, heavily encrusted, 25-50 x 7.5-12 µm. Encrustation dissolving in KOH, revealing a rather thin-walled upper part of the cystidium, cylindrical, 3.5-4.5 µm wide. Leptocystidih hyaline, thin-walled, acute; 30-55 x 2.5-3.5 µm, sometimes with narrow apical protrusion. Basidia clavate to subcylindrical, 15-24.x 3-4 µm, with four slender sterigmata. Spores hyaline, smooth, thin-walled, obovoid, 4-55 x 2.5-3.5 µm, not amyloid.

The species is best classified in Ceraceomyces Jülich despite its cystidia and relatively thick hymenial layer. Encrusted cystidia are also present in C. cystidiatus (J. Eriksson & Hjortstam) Hjortstam, but here the hymenial layer is much thinner. In fact, C. cerebrosus may represent an intermediate between Ceraceomyces and Phanerochaete Karsten, sharing with the latter similar cystidia and a relatively thick hymenial layer. Traditionally, Phanerochaete is restricted to species without clamps or with occasional clamps (sometimes in whorls) on the subicular hyphae. It is remarkable that New Zealand has several species which are best classified in Ceraceomyces, but show strong tendencies towards other related genera. C. corymbatus (G.H. Cunn.) Stalpers and C. varicolor (G.H. Cunn.) Stalpers, for example, are intermediates between this genus and Ceraceomerulius Bond. and Meruliopsis Bond., respectively (if these genera are considered as distinct).

Holotype: on Nothofagus fusca (Hook. f.) Oerst., New Zealand, Westland, Staircase Creek, coll. S.D. Baker, Nov. 1954 (PDD 11871).